Can entire SARFAESI proceedings be quashed for mis-description of property in Show cause Notice issued by the Bank?
Shubham Budhiraja [1] Mr. A took a loan of 8 Lakhs from Bank B. Mr. C stood as guarantor in the transaction. Mr. A made default and Bank-B after declaring Mr. A to be NPA, proceeded under SARFAESI by issuing section 13 Notice After taking physical possession, Bank- B took steps for auction sale. Mr. A filed an application before DRT but the same got dismissed. No appeal filed before DRAT but Writ filed before High Court challenging the e-action notice for being vague for misdescription of property and for failure of auction purchaser to deposit 75% within 15 days. Hon’ble High Court allowed the Writ and set aside the SARFAESI proceedings. Hon’ble Supreme court held that auction notice cannot be set aside for mere typo errors. [2] (i) It is true that the secured creditor is under an obligation to undertake the exercise and crosscheck the description of the mortgaged property at the stage when the initial proceedings under Section 13(2) are in